THAT BUDGET REVIEW Iain Begg European Institute, London School of Economics

OVERALL IMPRESSIONS Raises most relevant points –Principles for funding –Worthwhile discussion of added value Filling gaps; economies of scale; critical mass etc Mentions leverage; weaker on fiscal shortfall –Financing side may be … over-ambitious But lacks decisive orientations for change –So many spending areas deemed valid –Difficult to ascertain priorities Hence does it avoid hard choices?

Cohesion policy should become a standard bearer for the objectives of smart, inclusive and sustainable growth of the Europe 2020 strategy in all regions. EU Budget Review Oct. 2010

SIGNALS FROM THE REVIEW Greater concentration –In terms of Europe 2020 priorities, not regions Top-down approach –Menu of thematic priorities Linked to 2020 ‘flagship initiatives’ Fewer to be addressed in richer regions –Innovation as cross-cutting theme Strong link to National Reform Programmes Possibly some competition for funding?

TERRITORIAL BALANCE PROMOTING CONVERGENCE RISKING DIVERGENCE Traditiona l cohesion policy EU ‘2020’ cohesion policy RTD & I focused on excellence Selectively, the CAP Cohesion in richer regions Likely winning policy domains  =  Probable losing policy areas Rural develop- ment

“Solidarity is one of the foundation stones of the European Union, a core principle and source of strength”

IN THE NAME OF PRINCIPLES.. Solidarity: risk of multiple interpretations –Implies spatial concentration –But susceptible to other factors Environmental; natural disasters Results-driven: move away from input –Probably desirable… –…but introduces possible new concerns –Especially around the nature of conditionality Implications for predictability of funding

SOME DIFFICULT ISSUES Is cohesion best equated with the ‘inclusive growth’ component of Europe 2020? –May pay too little attention to regions & feedback Concerns about too much ‘top-down’ How will priority-setting on other policies impinge on territorial issues? –Effects from full range of policies And possibly even from revenue side of budget The risk of over-loading Cohesion policy –Expected to contribute to too many EU priorities –Optimising cohesion’s governance role

If we want things to stay as they are, things will have to change [tutto deve cambiare perché tutto resti uguale] Giuseppe de Lampedusa, “il Gattopardo”